Primary bond market

The latest inflation report — the producer price index — threw a monkey wrench into expectations for a big rate cut next month, according to some economists, may put into question any easing in September.

Would-be underwriters of the general obligation bonds will be able to see where they've been ranked among all the bids, and to improve their bid accordingly.

Muni performance is likely to recover during the second half of the year, said Cooper Howard, a fixed income strategist at Charles Schwab.

Through June 30, BAM insured 11 transactions with par of $100 million or more, with four more deals coming since then, the company said.

"The combination of stronger core and softer headline readings has left some traders struggling for direction," said Daniela Sabin Hathorn, senior market analyst at Capital.com. "There is a reason to be both bullish and bearish depending on which CPI reading you wish to focus on."

Returns for the month currently stand at 0.64%, which have "pushed muni returns back into the green with year-to-date returns of 0.09%," said Jason Wong, vice president of municipals at AmeriVet Securities.

The Virginia Port Authority will sell bonds to finance upfront rent payments for the privately owned Virginia International Gateway.

Issuance for the week of Aug. 11 remains elevated at an estimated at $10.713 billion, with $8.857 billion of negotiated deals and $1.857 billion of competitive deals on tap, according to LSEG.

"Nothing could delay a restructuring or a consensual deal [more] than the existing board was doing," said Assured Guaranty CEO Dominic Frederico of the Trump administration's removal of Puerto Rico oversight board members.

Hospital acquisitions, expansions and the anticipation of federal policy changes has increased bond issuance from the California Health Facilities Financing Authority.